Archives for February 2016

Tokyo wants ‘new level’ in relations with Moscow – PM Abe

“In 2013 trade between our countries reached a record-high [$34.8 billion- Ed.]. In 2015 the volume dropped by almost 40 percent but that was due to falling oil prices,” the minister said on Monday at the Trade and Industrial Dialogue Russia-Japan.

He added that economic relations between the two countries could and should expand more.

The minister talked about joint Russia-Japan energy projects Sakhalin-1 and Sakhalin-2, and Russia’s crude oil supplies to the country.

He also said Japanese companies have invested and operate in the Russian automobile and construction industries. About 14 percent of all Russian cars are produced in Russian factories by Japanese manufacturers.

Imports of Japanese cars and industrial machinery have been significantly reduced as a result of Western sanctions against Russia, according to the Russian Trade Mission in Japan. Japanese banks have problems providing export credit for equipment sold to Russia, while sanctions make it difficult to conduct business using US dollar transactions.

Moscow and Tokyo are currently working on creating a ‘green corridor’ to simplify customs procedures and boost trade.

READ MORE: Western anti-Russia sanctions could cost Japanese business $10bn

Russian Industry and Trade Minister Denis Manturov earlier told the Japanese media that economic relations between the countries were expanding despite anti-Russia sanctions.

In 2014 Japan followed US sanctions with 23 visa bans on Russian citizens, including government officials.

Article source: https://www.rt.com/business/333971-russia-japan-trade-increase/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Study casts doubt over online file sharing’s impact on movie industry

The plaintiffs are asking the court to stop the streaming and compensate for damages of at least $75,000.

The complaint has been lodged by Russia’s First Channel, CTC, Domashny, Che, Rain, Nostalgia, REN TV and TNT Comedy, reported business daily Kommersant.

The American online operators accused of piracy are Infomir, Panorama TV, Goodzone TV, Matvil Corporation, Actava TV, and Master Call Communications.

The lawsuit alleges the companies intercept the satellite signals of Russian broadcasters and redistribute them in the United States for a monthly fee, using the channels’ trade marks in advertising.

Subscribers can view the services through a downloaded IPTV player or a set-top box.

A representative from CTC Media told Kommersant that OTT-operators [companies that deliver media over the Internet – Ed.] have been actively developing on the US market.

“… Many of them illegally distribute content without contracts with copyright holders, they do not invest in infrastructure and don’t ensure high-quality broadcasting,” he said, adding that thus they could offer lower prices to subscribers. The average monthly price in the US for online Russian language channel packages is $5-15 against the $30-50 from traditional cable operators.

READ MORE:Downloaders face personal legal warnings as US steps up copyright protections

The CEO of Russia’s Rain TV channel Natalya Sindeyeva said pirate broadcasting causes a lot of damage to the company like “losses in revenue and in negotiations with potential partners.”

For legal viewing, Russian TV broadcasters cooperate with local cable and satellite operators in the US which include the international version of Russian channels in their subscription-based packages.

Article source: https://www.rt.com/business/333939-russia-tv-channels-lawsuit/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Delivery is down 23 percent, compared to the same period last year, Interfax reports, quoting data from Bulgarian gas operator Bulgartransgaz that processes about 50 percent of Russian gas going to Turkey.

Turkish Stream project has potential – Russian energy minister

According to the news agency sources, the reduction is linked to a price dispute between Gazprom and Turkey’s private gas importers.

Last year, Gazprom gave the importers a 10.25 percent discount, but is now doing away with it as energy prices have dropped significantly.

Business daily Kommersant’s sources say Gazprom stopped giving the discount at the beginning of the year. For January deliveries, Turkish companies had to pay at a higher price, but on the payment date of February 21 they only paid the discounted price.

As a result, Gazprom has cut the volume delivered by the size of the underpayment.

Enerco Enerji, Bosphorus Gaz, Avrasya Gaz, Shell, Bati Hatti and Kibar Enerji are the importers affected. Overall, they import 10 billion cubic meters of Russian gas per year. Kommersant’s sources in the companies say the cancellation of the discount hurts their business, as they have signed contracts with clients based on the discount gas price.

From the 1st to the 24th of February Gazprom under-delivered 117 million cubic meters worth $30 million, the newspaper’s calculations say. Kommersant added that Turkey could fine the Russian gas monopoly $2.5 million for not fulfilling its obligations.

The source in Gazprom claimed the reduction in supply will not affect supply of the Turkish market, “especially because Botas does not reach its contractual volumes.”

State-owned Botas imports about 17 billion cubic meters of Russian gas per year. In 2015, it didn’t get a discount from Gazprom due to the failure of the Turkish Stream negotiations and is now suing Gazprom.

Article source: https://www.rt.com/business/333732-russia-gazprom-turkey-gas/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Russia and Saudi Arabia agree to freeze oil production output

“If the countries don’t agree [on decreasing production – Ed.] competition and production increases will continue, and prices may stay low in 2016, 2017, and so on,” Novak told journalists.

Russia won’t increase oil production this year, it will equal the 2015 level [almost 11 million barrels a day – Ed.], according to the minister.

Novak considers the initiative to stabilize oil output at January 2016 level as reasonable. The plan to freeze oil production levels was put forward earlier this month by Russia and Saudi Arabia.

Tehran holds key to crude production freeze

However, Riyadh says it will not reduce crude production at its own expense and that high-cost American oil producers should make the cuts.

READ MORE: Saudi Arabia declares open war on shale

OPEC members Qatar, Venezuela, Kuwait and Iraq have also expressed a readiness to join the accord.

Another OPEC member, Iran is the main sticking point; it has declared its support for the oil output freeze but hasn’t made any pledges to curb production.

Novak announced plans to discuss energy, oil and gas projects with his Iranian counterpart in March.

READ MORE: Iran resumes oil export to Europe after 5-year-halt

However, the Iranian Oil Minister Bijan Namdar Zanganeh has called the output freeze proposal “ridiculous”. Iran has just restarted oil exports after sanctions over its controversial nuclear program had been lifted.

Talks on curbing output are still under way and are expected to be concluded by March 1. Novak expressed confidence that a deal will be reached.

Article source: https://www.rt.com/business/333619-novak-oil-price-agreement/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Kremlin considers first bond issuance since sanctions

Unnamed sources told the media that the caution has been issued by the State Department and the Treasury following questions from some banks whether they were permitted to arrange a bond sale for Russia.

Washington’s warnings not to bid on a Russian Eurobond deals won’t strongly influence the possibility and cost of their placement, Russian presidential aide Andrei Belousov said on Thursday.

The Russian Finance Ministry has sent a prospectus to 25 Western investment banks and three Russian lenders as it wants to raise $3 billion by issuing Eurobonds. It may become the country’s first debt placement on international markets since Western sanctions were rolled out on Russian entities in 2014.

Russia’s dollar-denominated 2023 bond now has a yield of 4.53 percent, sliding from 4.9 percent in September 2013 when Moscow raised $7 billion, data from the Financial Times showed.

According to the WSJ, some bank officials, including those at Citigroup, said they won’t participate. Goldman Sachs and J.P. Morgan Chase say they are still weighing their options.

“It is essential that private companies – in the US, EU and around the world – understand that Russia will remain a high-risk market so long as its actions to destabilize Ukraine continue,” the State Department said in a statement to the Wall Street Journal. It also warned of “reputational” risks of returning “to business as usual with Russia.”

Since 2002 US banks earned nearly a quarter of all annual Russian investment banking revenue.  In 2007, they made nearly $630 million profit on more than $2 billion in investment banking business in Russia. The amount plunged to $26 million last year as a result of anti-Russian sanctions.

Last year, the US and EU imposed sanctions on some Russian financial institutions and officials over the conflict in Ukraine.  An embargo was also introduced on the import and export of arms and related materials to and from Russia.  In return Moscow imposed a ban on agricultural produce, food and raw materials on countries that joined anti-Russian sanctions.

Article source: https://www.rt.com/business/333579-russia-us-eurobonds-sanctions/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Europe lays out conditions for Russia’s South Stream return

The corresponding memorandum was signed by Gazprom CEO Aleksey Miller, Greece’s Public Gas Corporation (DEPA) and Italian company Edison SpA in Rome on Wednesday.

The partners are planning to use the work completed by Edison and DEPA under the ITGI Poseidon project.

Previously, Poseidon lost a bid to build the Trans Adriatic Pipeline (TAP) for delivery of gas from Azerbaijan.

“The development of intra-European gas transit capacity is key to strengthening reliability and security of natural gas supplies, including from Russia, to customers all around Europe,” Miller said after signing the memorandum.

DEPA CEO Theodoros Kitsakos said reviving ITGI Poseidon is a step toward greater energy security in the EU that will boost Greece’s role as a major hub for gas transportation.

Italy vs. Germany: Nord Stream-2 debate splits EU

Previously, Russia wanted to deliver gas to Europe via the South Stream pipeline that was intended to go through Bulgaria. The project was suspended by Bulgaria at the request of the European Commission, claiming it was noncompliant with the EU’s Third Energy Package.

After that, Gazprom had plans to reroute the pipeline through Turkey — but Turkish Stream has been shelved since the conflict between Moscow and Ankara over the shooting down of a Russian jet in Syria.

The Poseidon project could also speed up the ratification of the Nord Stream-2 gas pipeline from Russia to Germany. Rome was reportedly irritated by the German project because Italian energy major Eni was a big investor in South Stream, and Italy was supposed to be the main consumer of South Stream gas. Given this new project, Rome is expected to soften its stance.

Article source: https://www.rt.com/business/333574-gazprom-russia-gas-black-sea/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

No binding deal on oil production cap agreed – Russian energy official

Oil minister Ali al-Naimi says the current crude oversupply should be addressed by less efficient producers.

The high-cost producers in question are US shale fields, Canada’s oil sands and deepwater projects. And this is the first time al-Naimi has so openly talked about Saudi Arabia’s oil policy.

“The producers of these high-cost barrels must find a way to lower their costs, borrow cash or liquidate,” al-Naimi said at the IHS CERAWeek conference.

“It sounds harsh, and unfortunately it is, but it is a more efficient way to rebalance markets. Cutting low-cost production to subsidize higher-cost supplies only delays an inevitable reckoning,” he added.

According to al-Naimi, Riyadh is ready to pump oil at $20 per barrel and still be profitable. “We don’t want to, but if we have to, we will,” he said.

Another reason for Saudi Arabia not to curb production is lack of faith in its competitors.

Tehran holds key to crude production freeze

“We are not banking on cuts because…there is less trust than normal. Not many countries are going to deliver. Even if they say they will cut production, they will not deliver,” said the oil minister.

Naimi’s words come after Iranian oil minister Bijan Namdar Zanganeh called a proposal by Saudi Arabia and Russia to freeze oil production “ridiculous”.

“It is very ridiculous, they come up with the proposal on freezing oil production and call for this freeze to take place in their 10 million barrels a day production vis-a-vis Iran’s one million barrels a day [planned production boost],” he told the Shana news agency . “If Iran’s crude oil production falls, it will be overtaken considerably by the neighboring countries,” Zanganeh added.

Global oil prices lost steam on Wednesday after the comments from Riyadh. Brent crude was down 1.5 percent, trading at $32.75 per barrel. US benchmark West Texas Intermediate was losing 2.5 percent, down to $31.08, as of 9:00am GMT.

Article source: https://www.rt.com/business/333448-saudi-arabia-oil-shale-iran/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Argentina lodges appeal against ‘illegal’ US court ruling handing $5.4bln to creditors

The settlement involves bondholders including Lightwater Corp, Old Castle Holdings, VR Capital, Procella Holdings and Capital Ventures International, according to the mediator.

The government expected to pay $6.5 billion to settle claims of about $10 billion by bondholders who refused to participate in the country’s debt restructuring.

In 2005 and 2010 Argentina suggested its debt holders swap bonds at a steep discount of up to 70 percent off their original value. The move was expected to ease the country’s financial crisis following its 2001 default on $100 billion in bonds.

While 93 percent of bondholders agreed on lesser-valued bonds, others, including US hedge funds, refused to participate. The hedge funds sued Argentina in US courts instead.

In a written ruling Friday, US Judge Thomas Griesa said Argentina’s new government had consistently declared a desire to resolve its dispute with foreign investors and the new stance had been welcomed by the US.

Argentina passes law to reclaim default debt from New York

He recognized Argentina’s “earnest efforts to negotiate and its striking change in attitude” since President Mauricio Macri took office in December and has made settling the dispute a top priority for the country.

READ MORE: Argentina accuses US judge of being ‘imperialist’ after debt plan ruling

Ending the dispute with bondholders is critical for Argentina as it prevents the country from tapping credit markets.

“Allowing the republic to re-enter the capital markets will undoubtedly help stimulate its economy and thus benefit its people,” said the judge. “It might even encourage other indebted nations to choose compromise over intransigence.”

Argentina’s total debt stands at about $20 billion and the government intends to issue bonds for $15 billion, according to the country’s Ministry of Economy and Finance.

Article source: https://www.rt.com/business/333373-argentina-debt-bondholders-agreement/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Attendees also learned more about 5G internet access – and some were possibly indoctrinated into a VR cult led by Facebook CEO Mark Zuckerberg.

Calling it “the most social platform” of the future, the baby-faced billionaire says most technology companies are on the same wavelength when it comes to VR.

The real, in-the-flesh Zuckerberg helped Samsung “unpack” their new virtual offering, Gear 360, which is powered by Facebook’s Oculus Rift technology.

All those who could get a seat at the event found a VR headset waiting for them and together they all plugged into the matrix.

The tennis ball-sized 360-degree camera will apparently be good for capturing ballet.

Nokia (remember them?) also unveiled its virtual reality 360 camera, which will cost US$60,000.

Predator hunters and aspiring assassins will be eager to get their hands on the Cat S60, which comes with built-in thermal imaging.

With the ability to create thermal maps from up to 100 feet (30 meters) away, Cat will be keen to attract those in the construction industry. 

Sony Life Space UX products also caught folks’ attention. 

These “intelligent devices” are aimed at assisting users in their daily lives and, while they’re still in development, give an exciting peek at what’s to come.

The “Xperia Agent” and “Xperia Projector” display images and interactive apps including a virtual keyboard that can be used on any surface.

This robot kicking a ball is a big viral hit.

With each passing MWC, some have noticed a trend in how handheld devices are beginning to mirror their cousins of yesteryear when it comes to size.

There has also been a lot of discussion focused on the future of 5G, as telecommunications providers from around the world detailed their plans for when the so-called fifth generation of mobile internet, which is predicted to be many times faster, finally comes on line.

EU Commissioner for Digital Economy and Society Günther Oettinger says 5G is expected to be rolled out in some parts of the EU by 2020, while Intel says it thinks it could be in markets like the US as soon as 2018.

One company not happy with MWC, however, is Uber.

The taxi app company is unable to launch in Spain due to what it calls “the most restrictive transport laws in Europe” – and thus is unable to make any money from the thousands in attendance at the event.

Then again, it also ensures that Uber drivers won’t shoot people in between picking up passengers.

READ MORE: Kalamazoo shooting suspect picked up Uber customers during rampage – police

The company said in a statement that it hopes Spanish authorities “will seize the opportunity this year to modernize its transportation regulations”.

Article source: https://www.rt.com/news/333297-mobile-world-congress-day-1/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

A patent application describing a “Re-Configurable Passenger Bench Seat” was filed to the United States Patent and Trademark Office by Airbus.

One drawing shows two overweight passengers occupying a spacious seat which closely resembles a park bench. Another features a family of four that would typically be forced to separate, if sitting in usual rows of seats.

The Airbus application says the bench seat can be “adapted to the requirements of the operator” and “to the requirements of specific groups.”

That includes senior citizens and overweight passengers, but also means the seating could squeeze in smaller children if required.

When two people occupy the bench, an arm table folds down to create a barrier between the two passengers.

Blind air passenger sees victory

The company said in its filing: “In modern means of transport, particularly in aircraft, optimum utilization of the space available in a passenger cabin is of major economic importance.”

“The cabin layout, particularly the layout of the passenger seats arranged in the passenger cabin, such as the allocation of a row of passenger seats to business class or to economy class for example, should be as flexibly, rapidly and easily re-configurable as possible,” it stated.

Carrying overweight passengers has become an issue for many airlines, as they struggle to find a balance between cost- and fuel-efficiency, as well as growing in-flight comfort requirements.

Last year, Uzbekistan Airways made a decision to weigh passengers and their hand luggage before boarding. The company warned that some obese passengers may be excluded from short-haul flights on small airplanes, if weight limits are exceeded.

Article source: https://www.rt.com/business/333266-airbus-designs-benches-obese/?utm_source=rss&utm_medium=rss&utm_campaign=RSS